Ajanta continues growing quite well and keeps generating (and distributing) very healthy cashflows. They are looking to get into newer therapies and pushing their branded generics business. Concall notes below:
FY25Q2 concall
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Sales grew at 15%, Gross margin 78%, EBITDA margins ~ 26%, PAT margins ~ 18%
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Announced dividend of 28/share; H1FY25 payout is 701 cr. (90% of CFO)
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US :
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(-2)% YOY decline (no new launches). Launches lined up for Q4 (4 launches in H2)
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ANDA approvals reduced to 55 (vs 58 in Q1)
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Target to file 8 products in FY25 (reduced from 8-12 earlier)
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Domestic :
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9% YOY growth, launched 10 new products (3 first launches in India)
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Looking to get into newer specialties
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Cardiology growth rate continues reviving (Q2 according to IQVIA: 16% vs 12% for IPM)
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12 brands with 25 cr.+ revenues (vs 11 in Q1)
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Trade generics : 46 cr. (vs 45 cr. in Q2FY24). India has 15,000 Janaushadhi stores (vs 7-8 lakh chemists)
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MR productivity (PCPM) has increased to 7.5 lakhs/month
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Emerging market (branded generics)
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Africa branded grew by 35% (launched 1 new product in Africa). Growth will be lower in H2FY25 (overall expect mid to high teens growth in FY25)
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Asia branded grew by 28% (launched 6 new products in Asia)
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Launched 13 products in emerging markets
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Africa institution
- Increase of 16% YOY
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MRs increased to 5100+ (vs 4800+ in Q1). Indian MRs increased to 3200+ (vs 3000+ in Q1)
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Other expenses increased by 36% (25.65 cr. was forex losses in Q2, H1: net forex loss was 5 cr.). H2 other expenses will be in-line with H1. Excluding forex losses, H1FY25 other expenses were 590 cr. (vs 534 cr. in H1FY24) and this is in-line with their growth
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Capex: 130 cr. in H1 and expected to be 200 cr. in FY25
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Working capital improved with debtors reducing to 81 days (vs 109 days in FY24) and inventory reducing to 67 days (vs 73 days in FY24). Payables reduced to 74 days (vs 85 days in FY24)
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R&D stood at 5% of sales
Disclosure: Invested (sold shares in last-30 days)
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